Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: dunnowhy Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 39  
Subject: Re: qadi set to climb higher Date: 4/24/1998 9:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I agree with your analysis completely.The company is conservatively managed, has an excellent product, and enjoys phenomenal customer loyalty.

Its key differentiators are 1. its long and consistent track record of rapid implementations (SAP's Achilles Heel), its "multi-" capabilities (multi-site, -language, -currency, -platform) which sutis it particularly well for distributed, decentralized operations, and its exclusive focus on industries where it has a strong fit (medical, automotive, food & beverage, etc.)

It is transitioning from a "Mom and Pop" (literally) company to a public one, and its management is increasing in maturity.

So why is it sitting around 15?

Answers: They don't sell services, they haven't grown by acquisition, and they haven't diversified into other markets. Thus, they have grown only by selling more (the old-fashioned way.)

Their technology is "old" but solid. Gartner Group rates them #1 in the mid-market for ERP, where traditionally technology is not a driver. So their product is solid, but not sexy.

There are 26M shares out, but the float is only 6M, so there's not a lot of the stock to buy, and the institutions haven't jumped on it.

Their EPS are the same as Baan, but price is 1/3. Thus, their P/E is 1/3 as well. Their year-end (1/98) earnings were solid, but were $.04 below estimates due to an accounting glitch (achieved yearly estimate of $.37 but restated some of the Q4 profit back into Q2.) They fired their CFO in 11/97 and didn't replace him until 4/98, so Wall Street got nervous.

So what do you do? Buy Baan or SAP or JDE and feel good because you're running with the herd. Or buy value, accumulate QAD, and wait for your reward.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement